Foreign Military Sales:

Update to Industry

Mr. Gilbert J. Liptak

Director,

Security Assistance

Management Directorate

U.S. Army TACOM LCMC

NDIA 2017

Tactical Wheeled Vehicles Conference

16 May 2016

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

2

SAMD

Mission

Develop FMS agreements and manage their execution

for TACOM commodities.

The international partner of choice for U.S. Army programs, leading DoD in

Security Assistance management with a dedicated, highly skilled

workforce. A high performance command, partnered with industry and

characterized by a climate of excellence, fairness, and accessibility

in a global environment.

SAMD

Vision

2

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

Letter of Request

Services Considerations

– Description / type of service

– Period of performance /

location

– DoD or U.S. contractor

– Case/program reviews

Training Considerations

– Type / level of training

– Number / skill level of

students

– Proposed location and dates

– DoD or U.S. contractor

– Training program concept

Support Considerations

– Operations Concept

– Maintenance Concept

– Supply Concept

– Initial Spares

– Support Equipment

– Facilities / Site Survey

– Publications

– Transportation

– Warranties

– Follow-on Support

General Info / Special

Considerations

– Purchaser

– Related purchases / MOU

or MOA

– Commercial negotiations

– Transparency / special

reports

– Interoperability

– Acceptance time frame

– International solicitation

Major Item Considerations

– Quantity

– Item identification /

description

– Intended end use

– Model / configuration

– Desired delivery date

Acquisition Considerations

– Pre-negotiations

– Sole source

– Offsets

Financial Considerations

– Funding source /

availability

– Payment Schedule/Initial

Deposit

– Financial Waivers

3

Total

Package

Approach

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

5

PEO

Soldier

PEO

GCS

PEO

AMMO

Army

Contracting

Command RDECO

M

PEO

CS&CS

S

Depots

/

Arsenal

s

MSO ACC-Warren ARDEC ECBC NSRDE

C

TARDE

C

Department

of the Army

System of

Systems

Engineering

&

Integration

Army Materiel

Command

Department

of Defense

JPEO

CBD

Department

of the Navy

TACOM

Support Relationship

Mission Command (OPCON) Administrative Control (ADCON)

Key

Logistics Assistance

Representatives

(LARs)

• Development • Production • Fielding

Lifecycle Management ACQUISITION

• Research • Development • Engineering

TECHNOLOGY LOGISTICS • Logistics Support • Sustainment

ILSC

PM-

LAV

Army

Sustainment

Command

Asst. Secretary

of the Army

(Acquisition,

Logistics &

Technology)

As of 01OCT16

The Army Team that forms the TACOM LCMC

4

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD)

(AMSTA-MSS)

Gilbert Liptak

Director

AMSTA-MSS

282-0629

Training /

Security

282-8236

Special

Projects

Officer

282-6912

Security

Assistance

Liaison Officer

282-8586

Executive

Assistant

282-0634

Admin

282-8411

Staff Action

Officer

282-0634

IT Support/

IASO

282-0924

TDA

Chief,

AFRICOM/EUCOM/

NORTHCOM/Chem-Bio/

Transportation Sys

Division

AMSTA-MSS-A

282-0922

Chief,

EDA/Refurbishment/

PEO Soldier/

Foreign Weapons

Division

AMSTA-MSS-C

282-0636

Chief,

CENTCOM/Force

Projection Systems

Division

AMSTA-MSS-D

282-7051

Chief,

Egypt / UAE

MRAP

Program Office

AMSTA-MSS-E

282-3621

Ground Combat Systems

Foreign Military Sales

Chief,

CENTCOM/

PACOM/

SOUTHCOM/GT&E/

Ground Combat Systems

Division

AMSTA-MSS-B

282-5820

MSO

Repair & Return

282-0043

M113FOV/M60/

ILAV/NIIE Team

Leader WSM

282-3841

Chief,

Kuwait

& Australia

Mgt Office

AMSTA-MSS-K

826-7600

Chief,

Iraq Program

Office

AMSTA-MSS-II

282-4181

5

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

TACOM Army FMS Across the Globe

Engaging with our Allies while Building Partner Capacity

(As of 25 April 2017)

Total Active FMS

Countries: 113

Cases: 852

New Business FY17: $1.7B

Total Value: $32.8B

Undelivered Value: $9.0B

Number of Lines: 6,796

CENTCOM Countries: 21 Cases: 429 Total Value: $27.9B Undelivered Value: $6.5B Number of Lines: 3,084

PACOM Countries: 16 Cases: 71 Total Value: $1.8B Undelivered Value: $947.1M Number of Lines: 674

EUCOM

Countries: 31 Cases: 149 Total Value: $624.8M Undelivered Value: $202.5M Number of Lines: 918

AFRICOM Countries: 21 Cases: 122 Total Value: $1.4B Undelivered Value: $1.1B Number of Lines: 1,487

SOUTHCOM

Countries: 20 Cases: 67 Total Value: $594.8M Undelivered Value: $139.4M Number of Lines: 534

NORTHCOM Countries: 2 Cases: 12 Total Value: $301.3M Undelivered Value: $147.8M Number of Lines: 68

6

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

TACOM NEW FMS BUSINESS BY FY

(10 YEAR TREND)

0

1

2

3

4

5

6

8 9 10 11 12 13 14 15 2016 2017

$ IN B

EDA

As of 17 Mar 17 7

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

TACOM WRN FMS Funded Contracts

FY17 (YTD) FY16

FMS Funds $334,101,977 $ 1,865,913,604

Small Business $60,666,383 18.2% $207,494,762 11.1%

SB Socioeconomic Categories:

Small Disadvantaged Businesses (SDB) $2,346,863 0.7% $28,287,076 1.5%

Woman Owned Small Businesses (WOSB) $2,684,099 0.8% $8,864,360 0.5%

Service Disabled Veteran Owned Small Businesses

(SDVOSB) $1,498,540 0.4% $3,836,212 0.2%

Historically Underutilized Business Zone (HUBZone)

Small Businesses $1,057,231 0.3% $3,280,121 0.2%

Place of Performance:

Afghanistan

$4,045,768

$81,833,962

United Arab Emirates

$186,236,126

Belgium

$6,745,064

Brazil

$53,868,769

Canada

$12,685,362

$78,292,570

Egypt

$744,948

$2,070,423

Gibraltar

$1,271,634

Great Britain

$7,953,502

Croatia

$1,302,066

Iraq

$63,037,044

$93,432,969

Korea

$134,703

Saudi Arabia

$3,730,482

$8,633,545

United States of America

$241,770,169

$1,352,226,476

8

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

Simplified Nonstandard Item Acquisition Program

Provide Foreign Military Sales (FMS) customers

with acquisition of non-standard items (NSI),

obsolete and/or commercial under the Simplified

Acquisition Procedures (SAP)

NSI = any item without a national stock number or a Commercial Off-The-Shelf

(COTS) item

9

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

What is SNAP?

The SNAP application supports the U.S. Army Security Assistance

Command (USASAC) mission

– Mission was assigned to TACOM in 1990

– Roles formalized by Memorandum of Understanding (MOU)

between TACOM and USASAC in 1992

USASAC delegated this mission to Army Contracting Command –

Warren (ACC-WRN)

USASAC manages the FMS requirements

– TACOM Security Assistance Management Directorate (SAMD)

approves travel and Supply Discrepancy Report (SDR) charges

– TACOM G8 controls SNAP Program funding

– ACC-WRN provides contracting support

ACC-WRN (Systems Office) provides overall program support

SNAP application functions as the acquisition system and contract

writing system, from receipt of requisition through payment

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

109

UNCLASSIFIED

UNCLASSIFIED

Vendors

300 Vendors with Access to SNAP 65 Vendors with Blanket Purchase Agreements (BPAs)

To Quote on SNAP Requirements a contractor: • Contacts SNAP team, usually through SBA or PM offices • Provides organization capabilities • Is provided access to the SNAP website • Searches requirements by CAGE code and Part Number • Submits quote electronically through SNAP vendor website

•POC: Mark Otto, mark.e.otto.civ@mail.mil , (586)282-7291

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

119

UNCLASSIFIED

UNCLASSIFIED

What I Can/Can’t Do For You

12

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

• Office visits: Provide FMS process education

• Can advocate for a US solution but not specific producer

• Can discuss some details of the case once it clears Congressional Notification

• Can identify where a case is in the process

• Can’t provide a copy of the FMS Case

• Can’t market your product

• Can’t give you information that would provide advantage over a competitor

• Remain neutral on Direct Commercial Sale vs FMS

• Point you in the right direction whenever possible

• Provide my opinion based on over 25 years of FMS experience

UNCLASSIFIED

UNCLASSIFIED

References / Links

13

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

• Arms Export Control Act (AECA) of 1976 (22 U.S.C. §2751 et seq.)

• International Traffic in Arms Regulation (ITAR)

• Security Assistance Management Manual (SAMM) (DSCA 5105.38-M)

• Financial Management Regulation, DOD 7000.14-R, Volume 15

• Defense Institute for Security Cooperation Studies (DISCS)- http://www.discs.dsca.mil/

• Security Assistance Management Manual (SAMM)- www.samm.dsca.mil/listing/esamm

UNCLASSIFIED

UNCLASSIFIED

Questions???

14

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

Background Information

14

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

FY17 TACOM WRN Top 10

FMS Funded Contractors

Contractor Location FY17 Awards (Thru 31 Mar)

NAVISTAR DEFENSE LLC Lisle, IL $ 85,855,261.12

GENERAL DYNAMICS Sterling Heights, MI & London,

ON (Canada)

$ 75,272,746.43

AM GENERAL LLC South Bend & Mishawaka, IN $ 28,426,449.70

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. Fairfax, VA $ 27,477,393.11

CRITICAL SOLUTIONS INTERNATIONAL, INC. Charleston, SC $ 20,541,027.00

TEXTRON INC. New Orleans, LA $ 20,520,235.50

CANADIAN COMMERCIAL CORPORATION Ottawa, ON (Canada) $ 12,625,844.25

BUKKEHAVE, INC. Fort Lauderdale, FL $ 8,755,151.56

DILLON AERO, INC. Scottsdale, AZ $ 8,024,950.52

PEARSON ENGINEERING LTD Newcastle-UPON-TYNE (GBR) $ 7,953,502.00

16

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

FY17 TACOM WRN Top 10

FMS Funded Contractors

Contractor Location FY17 Awards (Thru 31 Mar)

NAVISTAR DEFENSE LLC Lisle, IL $ 85,855,261.12

GENERAL DYNAMICS Sterling Heights, MI & London,

ON (Canada)

$ 75,272,746.43

AM GENERAL LLC South Bend & Mishawaka, IN $ 28,426,449.70

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. Fairfax, VA $ 27,477,393.11

CRITICAL SOLUTIONS INTERNATIONAL, INC. Charleston, SC $ 20,541,027.00

TEXTRON INC. New Orleans, LA $ 20,520,235.50

CANADIAN COMMERCIAL CORPORATION Ottawa, ON (Canada) $ 12,625,844.25

BUKKEHAVE, INC. Fort Lauderdale, FL $ 8,755,151.56

DILLON AERO, INC. Scottsdale, AZ $ 8,024,950.52

PEARSON ENGINEERING LTD Newcastle-UPON-TYNE (GBR) $ 7,953,502.00

16

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

FY17 TACOM Warren Top 10

FMS Funded Small Business Contractors

Contractor (SB) Location SB Category FY17 Awards

(Thru 31 Mar)

SDB WOSB HZSB SDVOSB

CRITICAL SOLUTIONS INTERNATIONAL, INC. Total Charleston, SC

$20,541,027.00

BUKKEHAVE, INC. Total Fort Lauderdale, FL

$8,755,151.56

DILLON AERO, INC. Total Scottsdale, AZ

$8,024,950.52

LOC PERFORMANCE PRODUCTS, INC. Total Plymouth, MI

$6,763,588.11

ROSENBAUER AMERICA, LLC Total Lyons, SD

$2,080,319.55

SOUTHEASTERN EQUIPMENT COMPANY, INC. Total Augusta, GA

$1,656,151.16

ATTOP INTERNATIONAL, LLC Total City of Industry, CA X

$1,227,756.42

COASTAL MECHANICS COMPANY, INC. Total Houston, TX

$1,104,347.14

CME ARMA, INC. Total Miami, FL X X

$958,286.96

AIRTRONIC USA, LLC. Total Spring Branch, TX

$840,464.96

17

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

FY16 TACOM WRN Top 10

FMS Funded Contractors

Contractor Location FY16 Awards

AM GENERAL LLC Total South Bend & Mishawaka, IN $593,927,697.71

GENERAL DYNAMICS Total Sterling Heights, MI & London, ON

(Canada)

$378,061,712.85

AUTOMOTIVE MANAGEMENT SERVICES FZE Total (United Arab Emirates) $186,236,133.80

BUKKEHAVE, INC. Total Fort Lauderdale, FL $98,413,861.11

AFGHAN INTEGRATED SUPPORT SER VICES JV Total (Afghanistan)

$80,248,756.96

BAE SYSTEMS CONTROLS INC. Total Anniston, AL; Johnson City, NY; Santa

Clara, CA; Sealy, TX; York, PA

$80,046,021.07

CANADIAN COMMERCIAL CORPORATION Total Ottawa, ON (Canada) $77,953,623.72

TEXTRON INC. Total New Orleans, LA $57,229,380.75

OSHKOSH DEFENSE, LLC Total Oshkosh, WI $56,761,633.21

NAVISTAR DEFENSE LLC Total Lisle, IL $27,728,209.29

18

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

FY16 TACOM WRN Top 10

FMS Funded Small Business Contractors

Contractor (SB) Location SB Category FY16 Awards

SDB WOSB HZSB SDVOSB

BUKKEHAVE, INC. Total Fort Lauderdale, FL

$98,413,861.11

SHORELINE AEROSPACE LLC Total Fort Lauderdale, FL X

$26,927,239.07

CRITICAL SOLUTIONS INTERNATIONAL, INC. Total Charleston, SC

$24,808,914.61

LOC PERFORMANCE PRODUCTS, INC. Total Plymouth, MI

$7,928,056.00

ACROW CORPORATION OF AMERICA Total Parsippany, NJ

$5,795,060.00

FEDERAL DEFENSE INDUSTRIES, INC. Total Moorpark, CA

$3,777,047.80

ATTOP INTERNATIONAL, LLC Total City of Industry, CA

X

$3,298,098.44

NMC/WOLLARD, INC. Total Eau Claire, WI

$3,248,771.87

AIRTRONIC USA, LLC. Total Spring Branch, TX

$3,216,988.92

CME ARMA, INC. Total Miami, FL X X

$3,216,649.52

19

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED

SNAP Workload

FY 2017 (through 2nd quarter) Requisitions received ………………5,925

Total requisition awarded ………….……..……………..…….....……4,237

Total dollar awarded………….…………..…….. .……………$25,419,280

FY 2016 Requisitions received ……………………………..……….10,281

Total requisition awarded………………..…….…………..……..…...8,681

Total dollars awarded………….……………………………….$78,500,000

FY 2015 Requisitions received ………………………………..……21,464

Total requisition awarded…………………….…………..………….16,896

Total dollars awarded………….………………………......…$102,720,030

FY 2014 Requisitions received ……….………….…...…….………18,993

Total requisition awarded…………….……………...……………....15,986

Total dollars awarded…………………..……..……..……...…$64,029,500

20

UNCLASSIFIED/ Distribution A: Approved

for Public Release.

UNCLASSIFIED

UNCLASSIFIED